Just a word on budgets, this term is banned in demand management. You can’t drive a business’s planning system on a static, out-of-date budget, unless your strategy is going out of business. The business has to be driven using a continuously update, improved, reasonable demand plan that reflects the current business environment, not what we thought might happen 9 to 15 months ago! Do not adjust your demand plans to match the budget, this crazy, but companies are forced to do this all too often! By all means, report budget against the current demand plans, and if you are way out find ways of improving your budgeting process by improving your demand management processes. After all, the budget should have been built from the consensus demand plans which are frozen at budgeting time.
Forecasting Time Horizons
What we see in many businesses is that they only forecast out a few weeks or months, this is insufficient if you want your ERP planning